Are consumers willing to pay for beef that has been produced without the use of uncontrolled burning methods? A contingent valuation study in North-West Spain

Abstract

Land burning has long been used as an effective means of land management. Used in a controlled manner, the burning of vegetation to clear land can have minimal effects on the natural environment. However, uncontrolled land burning, where fires are allowed to spread beyond the intended area, can have severe and detrimental effects on ecosystem functioning. This paper examines the premium residents of the Cantabria region of Spain are willing to pay for beef that has been reared without the use of uncontrolled land burning. Using the single bounded contingent valuation method, the result indicates that the average respondent is willing to pay an 84% price premium (€11.31 more per kilogram) for beef that has been farmed using a more environmentally means of land management. Willingness to pay is influenced by several factors including; price, age of the consumer, level of education, number of dependants in the respondents household and historical beef consumption preferences. Further to this, the results of the bivariate probit model suggest that not all factors influencing the decision to enter the hypothetical market, influence willingness to pay. This demand-side analysis suggests that there is a viable market for Pasiego beef in the Cantabria region with more environmentally favourable production credentials.